Summary
Inclusionary housing programs require new private housing developments to include units that are affordable to low or middle income households or pay a fee.
Policy Detail
Inclusionary housing programs require new private housing developments to include units that are affordable to low or middle income households. Inclusionary housing programs try to increase the supply of affordable units for owners and/or renters. Typically, the government entity establishes the rules for inclusionary housing and then regulates and monitors implementation.
The San Francisco inclusionary housing program was created in 1992 and is now captured under Section 415 of the San Francisco Planning Code. The rule requires that new private housing developments with 10 or more units must either pay a fee or include in the project a subset of units that are affordable (for rent or ownership). Developers also have the option of building affordable units off-site.
When developers opt to pay a fee instead of developing affordable units, the money is added to the Affordable Housing Trust Fund.
Organizations
The Planning Department and the Mayor’s Office of Housing and Community Development (MOHCD) manage the program. Read more about the inclusionary housing program at MOHCD’s website.
